The credit card or the debit card is the payment system of choice of consumers for their secure transactions. Using its magnetic stripe, the credit card or the debit card may store and transfer data, such as a consumer's name, card number, and card expiration date, to a payment terminal. This card information is utilized by the payment terminal to electronically verify that the card is valid and that the consumer has sufficient money to purchase an item. Once the card and the consumer is verified, the payment terminal may complete the purchase by electronically sending the purchase information to the consumer's and a vendor's bank.
However, credit card or debit card security relies on the physical security of the card itself and the privacy of the card number and expiration date. For example, if a consumer loses his or her card, the card may be used by someone else and, thus, the security of the card may be compromised. In another example, a card number may be easily stolen at the time of purchase by a unscrupulous vendor, and at the time of electronic verification and/or data transfer. The latter instance has been especially rampant with the rise of Internet commerce coupled with the rise of Internet data hackers.
In addition, credit or debit cards can be inconvenient in certain scenarios. For instance, many vendors take only a few certain brands of credit or debit cards, and unless a consumer has a credit or debit card required by a vendor, he or she may be able to make a purchase with a credit or debit card. Credit or debit card convenience also relies on a consumer physically having the card at the time of purchase, instead of being left at his or her home or office. In yet another example, a magnetic stripe of a card may wear down over repeated use over time. Thus, there is a need for a method and a system that allows for more secure and convenient transactions than those using credit or debit cards.